Investment Tax Credits (ITC) on Qualified Expenditures for Scientific Research and Experimental Development (SR&ED)
no fixed amount
Tax Credit
Description:
A corporation can claim for an ITC on qualified expenditures for SR&ED.
Comments on Funding:
1. A non-refundable ITC of 15% of the SR&ED qualified expenditure pool at the end of the tax year.
2. Some CCPCs may earn the enhanced ITC at the rate of 35% on the SR&ED qualified expenditure pool, up to their expenditure limit.
Rolling deadline
Eligibility:
The applicant must:
1. be a qualifying corporation, a Canadian- Controlled Private Corporation;
2. have a qualifying income limit of $500,000.
Application Steps:
Applicants claiming an SR&ED ITC to reduce tax payable or to receive a refund, they have to reduce the pool of deductible SR&ED expenditures in the next tax year. For more information see Line 435 in Guide T4088, Scientific Research and Experimental Development (SR&ED) Expenditures Claim – Guide to Form T661.
Documentation Needed:
Applicants must provide a completed Schedule 31, and other required forms as requested.
Other Things to Note:
About the author
Maurice
